Question
A certain amount
invested at 16% p.a. compound interest, compounded annually, grows to Rs. 6969.6 in 18 months. What will be the simple interest earned if the same amount is invested at the same rate for 4 years?Solution
ATQ,
Let the principal be Rs. βPβ ATQ: 1.08 Γ 1.16 Γ P = 6969.6 So, P = 6000 Simple interest = 0.16 Γ 4 Γ 6000 = Rs. 3840
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